Measuring Intangible Assets: Cadbury - Case Study Example

As taken earlier the two accounting standards AAS 18 and ASRB 1013 has certain implications as to how or to the extent to which the above mentioned categories can be applied as standard operating procedures for intangible assets.... The most important reason as the term "intangible" might itself suggest that quantifying such an asset would literally mean rationale treatment to the asset which means it would be complete subjective of one to classify them Similarly, just as assets can be quantified and expensed by some definite amount, such can not be applied to the case of intangible....

% (Datamonitor, 2006) market Mars is challenged by biggies like Nestle, Ferrero, cadbury etc.... Economists define wealth as one that has “Value in use” and “Value in exchange”.... Economics is the study of how wants are satisfied and decisions made when faced with limited resources....

This paper "The Valuation of intangible assets" presents valuation for intangible assets including those of an internally generated nature.... hellip; In case the share valuation is overvalued due to window dressing of intangible assets, the buyers are cheated since they are paying higher prices for non- existent benefits.... For the same reason, special distribution and selling rights, trademarks and intellectual property ownerships also constitute intangible assets....

For analyzing the reasons for the development of IAS 38 in its present form, it is important to understand its treatment to intangible assets, both internally and externally generated.... intangible assets are important components of many enterprises.... It is stressed that all intangible assets should be treated in a consistent way so that financial statements present really a true and fair view of business and other activities of organizations....

In the paper “intangible assets for Financial Reporting,” the author analyzes intangible assets, which have three important characteristics.... IAS 38 clarifies that intangibles should not be recorded as other assets.... Similarly differed tax assets, leases, assets arising from employee benefits, financial assets, mineral rights, and other exploration and evaluation assets, and most importantly goodwill arising from business combinations do not fall the preview of IAS 38....

Examples of these intangible assets would include patents, customer lists, copyrights and computer software.... Looking at these intangible assets in this perspective, that they can be converted onto tangible assets then one would rightly argue that they should be included in the financial statements of the company.... They are born of the intangible assets within the firm.... The phrase “without physical substance” means that they are assets that can not be seen, felt, or physically measured....

A significant characteristic that I noticed about John cadbury was that he was a philanthropist, a humanist interested very deeply with the welfare of the people around him; his humanitarian nature was successfully translated into his business strategy for managing his chocolate… In my opinion, it is possible, and highly desirable to use the philanthropic principles of the cadbury family to manage a business today; businesses should not just focus on making profits for themselves, there should be some effort put in to somehow improve the life of Applying cadbury Brothers Philanthropic Principles to Business....

The assets are classified into two categories namely limited intangible assets and unlimited intangible assets.... Limited intangible… include patents, copyrights, goodwill, reputation, and intellectual property while unlimited intangible assets include trademarks and business methodologies (Abdallah, 2004).... Despite their nature, the assets are of significance to companies as they influence or contribute to Decision on intangible assets Concerns about intangible assets intangible assets are resources with over year useful life but haveno definite value and physical substance as compared to tangible assets....